Recognizing the important role of payment systems in a stable financial system and in realizing monetary policy objectives, the Bangko Sentral ng Pilipinas (BSP) will soon be coming out with the implementing rules and regulations (IRR) of the National Payment Systems Act (NPSA).
Signed by President Rodrigo Duterte last October 2018, the NPSA provides a comprehensive legal framework which will support the twin objectives of maintaining a payment system that is vital in controlling systemic risk and of providing an environment that is conducive to sustainable growth.
BSP Governor Benjamin Diokno said that the single, overarching legal and regulatory framework of the NPSA will bring greater efficiencies, foster digital innovations, and promote competition.
The set of the proposed guidelines for the implementation of the NPSA directs operators of payment systems, or those maintaining platforms that enable payments or fund transfers, or issues payment instruments, need to register with the BSP.
Aside from paying the registration fee of P20,000, applicants will also need to submit applications signed by the company president and the chief executive officer.
Furthermore, they are also required to submit a business plan that identifies their target markets along with copies or business registrations or permits.
On the other, institutions such as banks, electronic money issuers (EMI), money service business (MSB) which have already registered with the BSP should only submit a properly accomplished application form signed by the company president and the chief executive officer.
Meanwhile, operators of unregistered payment systems will receive a cease and desist order issued by the BSP.
The stakeholders’ role
Tasked to oversee the payment systems and to exercise supervisory and regulatory powers, the BSP has drafted the IRR of the NPSA. Major stakeholders are yet to comment and give their feedback on the draft. They have until April 26 to express their opinions on the proposed set of implementing guidelines.